Date: 2020-05-18 22:30:02
Last month, I addressed an article that nearly a THIRD of Tenants were unable to pay April Rent…here is what happened with those tenants, enjoy! Add me on Instagram: GPStephan
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A little over month ago, almost down to the day, articles were flooding the internets with the big, giant bold claim that: Nearly a Third of U.S. Apartment Renters Didn’t Pay April Rent
First, almost every single article mentioned that the Vice President of the National Multi-Family Housing Council, who were the ones that conducted the survey in the first place…said that “The New Data For April With Historical Data is not a true representation of how rent payments are progressing.” The issue was that the cutoff for paid rent ends on the 5th of the month…and, since April 4th was a Saturday and April 5th was a Sunday, payments made during those days would not be counted until Monday, April 6th…AFTER the data was already analyzed.
Second, this only counted tenants who paid ON TIME…and IGNORES all the payments that just happen to be a little late. During times like this, I think it’s UNDERSTANDABLE if tenants wind up needing a few extra days to pay their rent.
However – here’s what happened. Even though nearly 1/3rd of tenants didn’t pay their rent by April 5th…once we count April 6th, just like I predicted…the number of tenants who paid their rent SPIKED UP all the way to 78%. Within a week after that, 85% of tenants paid their rent…and by the VERY END OF THE MONTH…94.6% of tenants paid their rent.
Now, of course…when we compare that to LAST YEAR, APRIL 2019…it was found that 97.7% of tenants paid their rent…so, based on one month of data, we’ve only seen an increase of 3.1% not paying their rent…which, lets be real, is FAR from the figure previously reported on.
As for THIS MONTH NOW, IN MAY….it was shown that 80.2% of tenants paid rent on time, as calculated by the 6th of the month…compared with 81.7% which had paid their rent during the same time in 2019.
Now, as far as whether or not this trend continues is up in the air…although, to me, it’s not too surprising that so many people continued paying their rent, for two reasons:
One is how rent payments are structured
As it stands, missed rental payments are NOT forgiven -meaning, if you don’t pay, you’re still going to owe the rent at some point in the future – and, even though many counties have enacted a RENT FREEZE which would temporarily prevent the landlord from filing an eviction, it doesn’t STOP the landlord from collecting payment at a later date.
Two, I have NO DOUBT that the Stimulus and Unemployment benefits have helped, to a certain degree.
If people are able to collect an ADDITIONAL $600 per week from the Illness, on top of their normal unemployment benefits…I think it’s no wonder that the amount of tenants who were unable to pay is as LOW as it is, to be honest.
The BIGGEST elephant in the room here is that the $600 per week unemployment benefit is set to expire on July 31, and…after that…we have NO CLUE if things are going to continue. IF businesses open back up by July…I THINK missed rent payments will be held to a minimum by the time the increased unemployment benefits expire. HOWEVER…IF there’s no new stimulus, AND our economy isn’t opened back up, AND people are still out of work – then I would absolutely expect these rental numbers to look a LOT different, with many more tenants unable o pay.
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